Elon Musk's recent offer to buy OpenAI for $97.4 billion has sparked a notable conflict with current CEO Sam Altman. This potential acquisition could hinder OpenAI's plans to become a for-profit public benefit corporation. The board must prove that they aren't underestimating the value of OpenAI's nonprofit status while also addressing Musk's claims of potential hostile takeover intentions. Musk's bid raises questions about its credibility amid the nonprofit's restructuring. OpenAI's counsel firmly stated the nonprofit is not for sale, setting the stage for possible legal confrontations.
In a statement Tuesday, Andy Nussbaum, outside counsel representing OpenAI's board, said that Musk's bid "doesn't set a value for [OpenAI's] nonprofit" and that the nonprofit is "not for sale." Nussbaum added, "Respectfully, it is not up to a competitor to decide what is in the best interests of OpenAI's mission."
Musk's bid, serious or not, may complicate OpenAI's effort to convert to a for-profit public benefit corporation within two years. Now OpenAI's board will have to demonstrate it's not underselling OpenAI's nonprofit by handing the nonprofit's assets, including IP from OpenAI's research, to an insider for a discount.
OpenAI could make the case that Musk's bid is a hostile takeover attempt given that Musk and Altman aren't the best of friends. It could also argue that Musk's offer isn't credible because OpenAI is already in the midst of a restructuring process.
Musk's offer - not to mention his ongoing lawsuit against OpenAI over what he claims is fraudulent conduct - promises to make for fierce courtroom brawls.
Collection
[
|
...
]